Instructions For Form 945-X (Page 6 of 8) in pdf

Example. If you had an increase to withheld income

stamp, mechanical device, or computer software

tax of $15,000 for payee A and a decrease to withheld

program. For details and required documentation, see

income tax of $5,000 for payee B, you would enter

Rev. Proc. 2005-39. You can find Rev. Proc. 2005-39,

$10,000 on line 3, column 3. That $10,000 represents the

2005-28 I.R.B. 82, at

net change from corrections.

ar16.html.

On line 7, you must explain the reason for both the

Paid Preparer Use Only

$15,000 increase and the $5,000 decrease.

A paid preparer must sign Form 945-X and enter the

7. Explain Your Corrections

information requested in the Paid Preparer Use Only

section of Part 4 if the preparer was paid to prepare Form

Treasury regulations require you to explain in detail the

945-X and is not an employee of the filing entity. Paid

grounds and facts relied upon to support each correction.

Preparers must sign paper returns with a manual

On line 7, describe in detail each correction you entered in

signature. The preparer must give you a copy of the return

column 3 on lines 3 and 4. If you need more space, attach

in addition to the copy to be filed with the IRS.

additional sheets, but be sure to write your name, EIN,

Form 945-X, and calendar year on the top of each sheet.

If you are a paid preparer, enter your Preparer Tax

Identification Number (PTIN) in the space provided.

You must describe the events that caused the

Include your complete address. If you work for a firm,

underreported or overreported withheld income tax or

enter the firm's name and the EIN of the firm. You can

backup withholding. An explanation such as “withheld

apply for a PTIN online or by filing Form W-12, IRS Paid

income tax was overstated” is insufficient and may delay

Preparer Tax Identification Number (PTIN) Application

processing your Form 945-X because the IRS may need

and Renewal. For more information about applying for a

to ask for a more complete explanation.

PTIN online, visit the IRS website at You

Provide the following information in your explanation for

cannot use your PTIN in place of the EIN of the tax

each error you are correcting.

preparation firm.

Form 945-X line number(s) affected.

Date you discovered the error.

Generally, you are not required to complete this section

if you are filing the return as a reporting agent and have a

Difference (amount of the error).

valid Form 8655, Reporting Agent Authorization, on file

Cause of the error.

with the IRS. However, a reporting agent must complete

You may report the information in paragraph form. The

this section if the reporting agent offered legal advice, for

following paragraph is an example.

example, advising the client whether federal income tax

“The $1,000 difference shown in column 3 of line 3 was

withholding is required on certain payments.

discovered on May 13, 2013, during an internal audit. Due

to a typographical error, we reported $11,000 as withheld

How Can You Order Forms,

income tax on Form 945 instead of the $10,000 actually

Instructions, and Publications from

withheld from payees. This correction removes the $1,000

that was overreported.”

the IRS?

Part 4: Sign Here

Visit the IRS website at

You must fill out both pages of Form 945-X and sign it on

page 2. If you do not sign, processing of Form 945-X will

be delayed.

Call the IRS at 1-800-TAX-FORM

(1-800-829-3676).

Who must sign the Form 945-X? Form 945-X must be

signed by a person who is authorized to sign for the type

of business entity.

Additional Information

Sole proprietorship—The individual who owns the

business.

You may find the following products helpful when using

Corporation (including a limited liability company

Form 945-X.

(LLC) treated as a corporation)—The president, vice

Form W-4P, Withholding Certificate for Pension or

president, or other principal officer duly authorized to act.

Annuity Payments

Partnership (including an LLC treated as a

Form W-4V, Voluntary Withholding Request

partnership) or unincorporated organization—A

Form W-9, Request for Taxpayer Identification Number

responsible and duly authorized partner, member, or

and Certification

officer having knowledge of its affairs.

Instructions for Forms W-2G and 5754

Single member LLC treated as a disregarded entity

Instructions for Form 843

for federal income tax purposes—The owner of the

Instructions for Form 945

LLC or principal officer duly authorized to act.

Form 945-A, Annual Record of Federal Tax Liability

Trust or estate—The fiduciary.

Pub. 15 (Circular E), Employer's Tax Guide

A duly authorized agent of the taxpayer may also sign

Pub. 575, Pension and Annuity Income

Form 945-X if a valid power of attorney has been filed.

Pub. 966, Electronic Federal Tax Payment System: A

Guide To Getting Started

Alternative signature method. Corporate officers or

duly authorized agents may sign Form 945-X by rubber

-6-

Instructions for Form 945-X (Rev. 2-2014)

Instructions For Form 945-X Page 6

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